NOTICE- Cover short intraday if IIP numbers good
After a bad day on the bourses we might witness another day of correction. Again, metals are likely to feel the heat and Tata Steel in particular after the downgrade from Fitch. Global rating agency Fitch Ratings has revised Tata Steel Ltd and Tata Steel UK Ltd’s outlook to negative from stable. Hindalco, Sterlite and Hind Copper might slide as the metal prices plunged on LME
We spoke about targets of 2800 or even 2740 to be visited which got negated due to
China balm, but they would again haunt us after the wipe out of all the points added in last two days. The immediate support for the market comes at 2880 for Nifty spot. We are in broad range and we will continue to see spikes either ways. Keep visiting the website for other news and updates
we expect the market to remain under pressure. If the
levels of 2,800 are broken on the Nifty, we could see 2,500 in the near
term. However, much will depend on the IIP numbers to be released
today. Only good numbers can save the day for bulls, as any sort of
positive surprise would trigger some short-covering. Otherwise, the
market will continue to be volatile with a downward bias. Despite the
slump in crude oil prices and the moderation in inflation, investors still
remain wary of the grim global situation and deteriorating local
economic conditions. As a result, any rally will be short-lived
Strategy on Future and Option
~ Short Dish TV India Ltd Nov Future @ Rs16.85 for the target price of Rs15 and stop loss placed at Rs17.25.
~ Short Suzlon Energy Ltd Nov Future @ Rs58 for the target price of Rs52 and stop loss placed at Rs61.